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Immigration and Texas' Budget Crisis: The Elephant in the Room
FrontPageMagazine.com ^ | December 30, 2002 | Chris Allen

Posted on 12/30/2002 5:37:04 AM PST by SJackson

The coming session of the Texas Legislature has been billed as "the perfect storm" because of the looming $5 to $12 billion-dollar budget shortfall. Although the evidence suggests that immigration, both legal and illegal, is fueling the rapid growth in state spending on social services, this issue is almost entirely absent from the debate.

It is well established that recent immigrants use more in services than they pay in taxes, particularly to state and local governments. The National Research Council, a branch of the prestigious National Academy of Sciences, estimates the net fiscal cost of immigration ranges from $11 billion to $22 billion per year, with most government expenditures on immigrants coming from state and local coffers, while most taxes paid by immigrants go to the federal treasury. This is the result of the relatively low level of tax payments by immigrants, because they are disproportionately low-skilled and thus earn low wages, and a higher rate of consumption of government services, both because of their relative poverty and their higher fertility.

According to 2000 U.S. Census data, some 13.2 percent of immigrants enroll in welfare programs compared with 2.1 percent of native-born Americans. In Medicaid, 18.6 percent of immigrants participate, as opposite 12.1 percent of native-born. Mexican immigrants, who comprise the vast majority of immigrants to Texas, use food stamps at nearly twice the rate of native-born Americans and collect an average welfare payment that is 20 percent higher than those recipients.

The National Research Council found that in California, which has endured a similar flood of Mexican immigration as Texas, each native household is paying about $1,178 a year in state and local taxes to cover the gap between the services used by immigrant households and their tax receipts. Although Texas was not included in this study, there is no reason to think the reality is any different here.

Indeed, during the last three years, the Harris County Hospital District alone spent $330 million to treat and immunize illegal immigrants, estimated to be at least 20 percent of their indigent caseload. The District covers this expense through its escalating tax burden on local taxpayers and through cost-shifting to Medicaid and insured patients. The District provides not only emergency care to illegal immigrants, but also a full range of elective services, even access to its fertility clinic that is not included in the health plan for District employees. While the 700,000 illegal immigrants in Texas are only eligible for welfare if they have worked for at least ten years or received asylum, they receive free health care, food stamps, education, and nearly all other government services.

In 2002, Medicaid represented 22.6% of Texas' budget. That number is expected to increase to 23.7% in 2003 in the wake of an August 19 report by the Health and Human Services Commission concluding that, because of higher-than-planned growth in caseloads, the state's Medicaid and children's health insurance programs will cost $2.4 billion more in the next budget cycle than in the current one. Since 1987, the Texas Medicaid budget has grown 500 percent, due in large part to increased enrollment, much of it undoubtedly the result of immigration.

The growth in state health care spending is just one example of how immigration is contributing to the budget shortfall. All of the school districts in South Texas receive Robin Hood recapture payments. Although these districts would likely be poor regardless of current levels of immigration, they would not be experiencing such large growth in their enrollments. It is this growth that is responsible for the budget crises in both urban and suburban districts that are being forced to send more and more of their local tax revenues to the state, leaving them unable to meet the needs of their own students.

Immigration is also a major factor in the population growth that is responsible for growing traffic congestion and pollution in Texas' major cities.

Ultimately, the Legislature's sensitivity to public opinion is likely to forestall a general tax increase this session, but that may come at the expense of vital funding for transportation and higher education, as well as Robin Hood relief. Unfortunately, even though the state bears most of the cost of immigration, it is virtually powerless to control it because it is the constitutional responsibility of the federal government.

Until Washington fortifies border enforcement to stop illegal immigration and reduces the number of unskilled legal immigrants, Texans will pay for the consequences, whether in higher taxes or the crowding out of important government services. While immigrants continue to contribute much to Texas and the nation, if we attempt to absorb all of the many millions of indigent people throughout the world, we will sacrifice the very quality of life that has led so many people to come here.

Chris Allen is State Chairman of the Young Conservatives of Texas (www.yct.org) and a graduate student at the George Bush School of Government and Public Service at Texas A&M University.

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TOPICS: Culture/Society; Editorial; Government; US: Texas
KEYWORDS: immigrantlist
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To: citizen
Well, sure, if all you consider is sq. ft. but....


What else is there? Sq ft (or acreage) plus improvements then the type property, commercial, residential, industrial, farm, wetlands, unimproved, etc. Sounds like you are appreciative of having the fortune of living where ever it is you do

61 posted on 12/30/2002 1:38:18 PM PST by deport
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To: RainDog
I'm sure Arturo works hard to please your perspective

He lived just across the border in Brownsville, went to college in Houston and couldn't care less what I think of him. He just doesn't like supporting parasites.

62 posted on 12/30/2002 1:38:44 PM PST by B4Ranch
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To: lewislynn
Send the bill to the Feds, they ‘control’ the boarder. Time for the Feds to pay for this mess

The Feds is you.

The Feds is you and me, right now it's only me taken care of the bill.

63 posted on 12/30/2002 2:44:23 PM PST by Lockbox
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To: Lockbox
The Feds is you and me, right now it's only me taken care of the bill.

Then can I have my money back?

64 posted on 12/30/2002 5:13:24 PM PST by lewislynn
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To: RainDog
Nice try with the race card slick.
65 posted on 12/30/2002 5:39:35 PM PST by junta
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To: lewislynn
Then can I have my money back?

Right after I get mine.

66 posted on 12/30/2002 5:42:06 PM PST by Lockbox
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To: MissAmericanPie
nor is it our obligation to save or feed the world

Bravo! Exactly!

67 posted on 12/30/2002 6:50:44 PM PST by neutrino
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To: RainDog
With your crew of English speakers or Anglos

Not just them ---have you ever seen ANY of the immigrants' kids willing to do this work? You won't, they're less likely to take these jobs than Americans' kids, a life on welfare and government handouts has them expecting free tuitions and the rest.

68 posted on 12/30/2002 7:51:47 PM PST by FITZ
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To: RainDog
Notice the article never uses the word "Hispanic"; instead, "immigrant" is code for Hispanic.

That's pretty racist of you because where I live there's plenty of Hispanics who aren't immigrants and technically never were immigrants since they were here when this region became the US ---hint ---few of them want open borders either ---Silvestre Reyes was actually elected to Congress from an overwhelmingly Hispanic region after he became popular from his Operation Blockade and Operation Hold-the-Line. It's really only people financially benefitting from what is cheap labor to themselves because the costs of the labor are passed on the taxpayers who believe in open borders.

69 posted on 12/30/2002 7:58:55 PM PST by FITZ
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To: SJackson
The National Research Council found that in California, which has endured a similar flood of Mexican immigration as Texas, each native household is paying about $1,178 a year in state and local taxes to cover the gap between the services used by immigrant households and their tax receipts. Although Texas was not included in this study, there is no reason to think the reality is any different here.

I know it's a serious problem in Texas ---possibly worse because along the border, the property taxes are much higher than $1,178 a year on an average home ---the wages are low but the property taxes match NY's. I wonder how much total tax the average taxpayer in Texas at least in a border county pays compared with the average in California. I read that to pay just this year's budget deficit in California, each resident would have to pay $1000, I wonder how much of the Texas $12 billion deficit translates to each TAXPAYING resident since fewer and fewer residents pay much taxes.

70 posted on 12/30/2002 8:06:38 PM PST by FITZ
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To: Centurion2000
Thanks for speaking up for renters!I'm renting for the first time in my life and at $1600.00 rent paid per month I assume some of that goes for property taxes paid by my landlord.
71 posted on 12/30/2002 8:10:33 PM PST by Mears
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To: RainDog
Right on RainDog. I agree with your
excellent post.

Liberty
72 posted on 12/30/2002 8:12:56 PM PST by Liberty Valance
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To: RainDog
I live and interact with illegals daily, send them packing until there is a fool proof way to keep them from voting, getting welfare, WIC, and sending their kids to school without charge, then demand they be taught in Spanish.

This is our country, not a flop house, it is not up for grabs. Sure we need menial labor to a point. But not to the point where American carpenters are put out of the picture due to the wage being too low, because let me tell ya, cheap labor has not translated to cheaper housing prices, just more profit for the builder.

Have you noticed the air lines having a problem replacing screeners and workers with real Americans? I haven't. This b o l o g n a that Mexicans do jobs Americans won't do is a crock. For the most part they take up jobs that Americans need, and need at a living wage.

There is more to America, and being an American than economics and companies charging the same price as if they had used American labor. Not to mention I am sure I am not the only American tired of having the FBI ask us to pick up their mess if we want to save our rears from another 9-11 attack.

The nerve of saying to the public, "Yeah we were tailing these guys right across the border then we lost them, can you, John Q Public fix the mess we made?" The protection of our borders should be number one on the agenda, all other efforts are for show and a waste of time and billions of dollars. Home Land Security is not even close to being able to accomplish security and never will be. You don't let the enemy in the gate then cross your fingers for luck.

Until Americans make it clear that we will not accept the idea that the loss of a few thousand American lives is acceptable as long as free trade isn't interfered with then we will not be doing our jobs as citizens will we. Until we make it clear that this is our home, not a corporation, not Disney Land, then we will continue to be over run until we are no longer an America worth living in.
73 posted on 12/30/2002 8:22:00 PM PST by MissAmericanPie
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To: RainDog
With respect to immigrants, immigrants pay rent, purchase gods, pay sales tax, pay gasoline tax, provide labor and services and on an on, and while no one has real stats on the gray/black economy, immigrants are more than likely a net PLUS for the Texas economy.

Are you guessing at that? Well then, I'm guessing that immigrants are more than likely a net MINUS for the Texas economy.

74 posted on 12/30/2002 8:37:56 PM PST by judgeandjury
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To: RainDog
It also pleases me to note that the $13 billion Mexicans sent home was made the American way-- they earned it.

That's if you don't count the money they send home to Mexico that they receive from welfare, from the food stamps that they sell for cash, and from the money that they save by living 10 to an apartment, a violation of most city's zoning laws. And do you think that maybe at least a few Mexicans may engage in criminal activity such as selling drugs to bring in some money?

75 posted on 12/30/2002 8:51:07 PM PST by judgeandjury
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To: RainDog
McDonald's does not pay nearly as well as grapefruit harvesting does (which is why immigrants come), so where are the English speaking or Anglo grapefruit pickers?

If you paid a decent wage and it was year-round work, you should have no problem finding American workers to do that type of work. So, would you care to tell us how much you pay your workers, and is it year-round work?

76 posted on 12/30/2002 8:59:19 PM PST by judgeandjury
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To: Ben Ficklin
Thanks for the links. I had some different info that I will go back and look at.
77 posted on 12/30/2002 9:50:31 PM PST by Marine Inspector
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To: gubamyster
Don't mess with Texas....LOL!
78 posted on 12/30/2002 9:56:01 PM PST by Joe Hadenuf
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To: judgeandjury
Are you guessing at that? Well then, I'm guessing that immigrants are more than likely a net MINUS for the Texas economy.

No one has objective stats on the cost/benefit of immigrants, particularly illegal immigrants. So yes, I am guessing.

But my guess is based upon a core belief/trust in capitalism. You see I love the wonderful phenomenon of politically dispassionate markets.

It is real simple: if the market/economy (which is the ultimate cost/benefit analyzer) does not want immigrants, it would not attract immigrants. But the market/economy does attracts immigrants, because the market/economy needs immigrants.

Maybe you are a communist or something, I dunno why you can't understand this, but if you insist on banishing people from our land, please begin with the homeless, disabled, retarded, retired, unemployed, democrats:)-- not hard working Hispanic immigrants.

79 posted on 12/31/2002 2:50:35 PM PST by RainDog
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To: SJackson
What a sad betrayal of the heroic sacrifice of the brave men who died at the Alamo, to secure Texas for those who share its traditional culture! The cowards who refuse to face an issue that goes to the very survival of that culture, deserve only the contempt of all decent men and women. I am not a Texan, but I appreciate the tragedy befalling fellow Americans, who happen to be.

May the New Year bring courage and principle to those who this year have shown little or none--not only in Texas, but all over America.

For my fellow Conservatives, who have fought the good fight, I wish all a very Happy New Year!

William Flax Return Of The Gods Web Site

80 posted on 12/31/2002 2:57:26 PM PST by Ohioan
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